Delhi High Court - Orders
Pr. Commissioner Of Income Tax-1 vs Casio India Company Pvt. Ltd on 21 July, 2022
Author: Manmohan
Bench: Manmohan, Manmeet Pritam Singh Arora
$~21
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ITA 211/2022
PR. COMMISSIONER OF INCOME TAX-1 ..... Appellant
Through: Mr. Sanjay Kumar, Sr. Standing
Counsel for Revenue.
versus
CASIO INDIA COMPANY PVT. LTD. ..... Respondent
Through: Mr. Nageswar Rao and Ms. Deepika
Agarwal, Advocates.
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
ORDER
% 21.07.2022
1. The present appeal has been filed by the Income Tax Department (ITD) challenging the order dated 24th February, 2020 of the Income Tax Appellate Tribunal (hereinafter referred to as the 'ITAT') passed in ITA No. 385/Del/2016 for assessment year (hereinafter referred to as 'AY') 2011-12.
2. A perusal of the impugned order shows that the ITAT has relied upon an earlier order passed in assessee's own case for AY 2010-11 to hold that advertisement, marketing and promotion expenses ('AMP') incurred by the respondent are not an international transaction and hence cannot be separately benchmarked. ITAT has thus, directed to delete the adjustment of AMP.
3. Upon enquiry from the counsel for the appellant as regards the status of the finality of the order relied upon by the ITAT for AY 2010-2011, he submits that he is not aware about the status of appeal, if any, filed by ITD Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:27.07.2022 ITA 211/2022 Page 1 of 5 19:24:45 with respect to the said order. In fact, he is not even aware about the details of the said order.
4. It has come to our attention that another appeal between the same parties being ITA No. 67/2022 for AY 2015-16 on the same 'issue' was listed on 19th July, 2022 wherein as well, the ITAT had relied upon the earlier order passed for AY 2010-11, followed it and determined the said proceedings as well in favour of the assessee. This Court, on 19th July, 2022 as well, had adjourned the said appeal to enable the learned counsel for the appellant to ascertain the status of the appeal, if any, filed by ITD against the relied upon order of AY 2010-11.
5. Learned counsel for the respondent has submitted that he has not been served with any appeal paper book against the order passed by the ITAT for the AY 2010-11 and he is not aware about filing of any appeal.
6. In the present appeal, it is observed on a perusal of the impugned order that ITAT has relied upon its earlier order passed for AY 2010-11 while determining the 'issue' of AMP for AY 2011-12, 2012-13 & 2013-14 and holding the same to not be an international transaction. However, as stated above the final status of the order passed by ITAT for AY 2010-11 is not known to the learned counsel for the appellant.
7. We reasonably expect the ITD to make a full disclosure with respect to status of the relied upon orders of the ITAT, status of appeals, if any, filed against similar orders by the ITD or if the ITD has accepted the said orders so as to ensure judicial discipline and consistency while determining the issues challenged in appeal.
8. The aforesaid obscurity as regards lack of information from ITD about the relied upon orders of ITAT, arises recurringly when fresh appeals Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:27.07.2022 ITA 211/2022 Page 2 of 5 19:24:45 under Section 260A of the Income Tax Act, 1961 are first listed in the Court. Adjournments are then sought by ITD to ascertain the status of the appeals, if any, in relied upon matters; earlier decisions of this Court, if any, on the issue raised in appeal and this lack of information in turns leads to unwarranted adjournments.
9. It is also noted that on occasion the questions of law proposed in the appeals have been conclusively determined by this High Court in favour of the department or against it. The said fact is material and should preferably be disclosed in the appeal.
10. To be able to efficiently and effectively deal with the appeals on the first listing at the stage of notice and avoid unnecessary adjournments, it is deemed appropriate to direct the Income Tax Department that in appeals filed by the department, it shall mandatorily make the following disclosures in all its appeals:-
a. Re: ITAT order in other assessment years for the same assessee or another assessee i. The department shall, whenever it challenges an 'issue' which has been decided by the Tribunal on the basis of its earlier order(s) ('relied upon order'), make a disclosure whether appeal to High Court against such relied upon order (s) have been filed; the stage of the said appeals. If the appeals in High Court have been decided, that position should be declared. In case the issue stands finally decided, department shall specifically explain as to why the same issue is sought to be raised again before the Court.Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:27.07.2022 ITA 211/2022 Page 3 of 5 19:24:45
ii. The department shall in cases arising out under Section 153A and 153C of the Act or in other cases where facts are common to several assessees, whenever it objects to an order of the Tribunal which in turn has been passed relying upon the orders made in respect of other similarly placed assessee, to make a disclosure as regards the status of the orders relied upon by the Tribunal, as to whether appeal has been filed in such case and if filed, status of the said appeal.
b. Re: Covered question of law i. The department shall, wherever it proposes a question of law which is covered by the judgment of this High Court or the Supreme Court, give particulars of the said judgment. The department shall specifically explain as to why the same question of law is sought to be raised again before the Court. ii. The department shall, whenever it objects to an order of the Tribunal, make a specific disclosure in respect of each 'issue' to which challenge is made, whether similar issues in other cases have been allowed or disallowed.
11. The learned counsel for the appellant and the Registry is directed to communicate this order to Commissioner of Income Tax (Judicial), High Court Cell, who shall in turn circulate it to all concerned commissioners/officers of the Income Tax Department for strict compliance, in all future filings and appeals.
12. This order may also be communicated to the concerned Registrar (Filing) to direct the concerned officials to ensure that the said disclosures are contained in the appeal; and the appeal may be listed only after such a Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:27.07.2022 ITA 211/2022 Page 4 of 5 19:24:45 disclosure is made by the counsel.
13. The learned counsel for the appellant is directed to file the information as regards the order pertaining to AY 2010-11 two weeks before the next date of hearing.
14. List this matter on 28th November, 2022 along with ITA No. 67/2022.
MANMOHAN, J MANMEET PRITAM SINGH ARORA, J JULY 21, 2022/msh Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:27.07.2022 ITA 211/2022 Page 5 of 5 19:24:45